Variance Analysis

Question 1

DM Price Variance

Answer 1

AQ (AP - SP)

Question 2

DM Quantity Usage Variance

Answer 2

SP (AQ - SQ)

Question 3

DL Rate Variance

Answer 3

AH (AR - SR)

Question 4

DL Efficiency Variance

Answer 4

SR ( AH - SH)

Question 5

P DXA
U DXS
R DXA
E DXS

Answer 5

price variance
usage quantity variance
rate variance
efficiency variance

Question 6

VOH Spending variance

Answer 6

AH ( AR - SR)

Question 7

VOH Efficiency Variance

Answer 7

SR (AH - SH allowed for actual production)

Question 8

FOH budget spending variance

Answer 8

Actual FOH - Budgeted FOH

Question 9

FOH Volume Variance

Answer 9

budgeted FOH - standard FOH cost allocated to production

Question 10

application of overhead in standard costing

Answer 10

overhead rate = budgeted oh/ cost driver

applied oh = std cost driver for actual x o/h rate

Question 11

sales price variance

Answer 11

Actual sold units (actual SP/unit - budgeted SP/unit)

Question 12

sales volume variance

Answer 12

Std CM per unit (actual sold units - budgeted sales units)

Question 13

DM Efficiency Variance

Answer 13

SP ( AQ - SQ)

Question 14

DL Usage Variance

Answer 14

SR ( AH - SH)

Question 15

market share variance

Answer 15

Actual Market Share - Budgeted Market Share

X Actual Industry Units

X Budgeted CM/unit